Use this procedure to set up finance charges in the
software.
Finance charges are usually set up once a month, or as
needed.
Important: Transaction codes defined in the
Accounts Receivable Installation screen must be set up in
Accounts Receivable Transaction Code
Maintenance.
Open the Installation > Accounts Receivable screen.
On the Properties tab,
designate a default finance charge transaction code at the Default finance
charge transaction code field. Click OK.
On the Transaction Code File
Maintenance screen, set up the necessary transaction code for the
finance charges you are issuing. The G/L account code should be named "Interest
Income", or something similar. This code should already exist as defined in the
Accounts Receivable Installation screen.
Open the Finance Charge Entry
screen.
Click the Calculate button. The
Finance Charge Calculate screen calculates finance charges
for customers with overdue balances using the finance transaction code assigned to
the selected customer(s).
At the Period end date field,
enter the period end date for the period in which you want to calculate finance
charges.
At the Number of days grace
period field, enter the number of grace period days, if any. If there
is not a grace period, press Enter.
At the Minimum finance charge
field, enter the minimum finance charge applicable to all customers, and then click
OK. If the calculated figure is less than the minimum, the
minimum will default.
Click the Preview button and review the
report for accuracy.
Click OK to return the Finance Charge Entry/Change screen.
Click the Update button.
Select Continue.
Verify your finance charge settings are correct.
Note: When working in the Finance Change Entry/Change
screen, the calculated amounts can be overridden in the Finance
charge field. This is handy if you choose to set up divisionalized
finance payments.